9:09 am, August 18, 2025
Used car prices are performing far better than the seasonal norms with average prices down just 0.5% in August.
The average movement in August, according to trade price experts Cap HPI, is usually a 1% drop.
Used car pricing experts from the firm confirmed this is the second month in a row that prices have outperformed average drops.
The firm said this is down to a ‘shortage of desirable stock’ and ‘balanced’ supply and demand dynamics in the used car market.
‘Excluding March, when our monthly product movements aligned with average seasonal expectations, every month this year, including August, has outperformed seasonal norms,’ said Cap HPI.
‘The summer months have shown particularly favourable performance.’
Diesel cars performed the strongest with a tiny 0.1% drop in August, petrols fell 0.3%, hybrids 1% and plug-in hybrids 0.6%.
Electric cars saw the most significant fall in the month dropping 1.8%. The trade price experts said this was the ninth consecutive month for negative electric car movements.
‘In fact, values for EVs have declined in 33 of the last 35 months,’ said the firm.
‘Volatility clearly remains in the used BEV sector across both trade and retail markets.
‘As mentioned previously, if the “building in safety” mindset continues to be factored into bids and purchase prices, it will be no surprise to see values continually declining and the market remain fractured.
‘A fundamental shift in market confidence and demand from used car customers will be necessary for BEV values to stabilise.’
Cap HPI said this also ‘demonstrates the continued strong demand for ICE vehicles’ in the used car market.
Looking ahead into September, Cap HPI said it expects this market stability to continue. Average drops are around 0.7% for used cars in September.
The firm added: ‘The outlook points towards “more of the same” rather than any dramatic shift in valuation trends.’
